BREAK EVEN ANALYSIS

Breakeven analysis and strategy building

Breakeven analysis and strategy building

Breakeven analysis refers to forecasting sales and cost of the company. When a company equals its revenues to its cost, it said to have achieved the breakeven point. In this situation, there are no profits in the business, neither any losses, or in other words, your sales are just enough to cover the cost you have incurred. Breakeven calculation is critical for business owners to formulate their business strategies, because, when determining margins breakeven point is the lower limit of profits. Cost determination is critical in breakeven analysis, and it is ...